Albert established a qualified tuition program for each of his twins, Kim and Jim. He started each fund with $$20,000$ when the children were five years old. Albert made no further contributions to his children's plans. Thirteen years later, both children have graduated from high school. Kim's fund has accumulated to $$45,000,$ and Jim's has accumulated to $$42,000.$ Kim decides to attend a state university, which will cost $$60,000$ for four years $($tuition$,$ fees, room and board, and books$).$ Jim decides to go to work instead of going to college. During the current year, $$7,500$ is used from Kim's plan to pay the cost of her first semester in college. Because Jim is not going to college now or in the future, Albert withdraws the $$42,000$ plan balance and gives it to Jim to start his new life after high school.

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a$.$During the period since the plans were established, should Albert or the twins have been including the annual plan earnings in gross income?